CBP Commissioner Testifies at House Trade Subcommittee Hearing on CBP Budget Authorizations and Other Customs Matters
On July 25, 2006, U.S. Customs and Border Protection (CBP) Commissioner W. Ralph Basham testified at the House Ways and Means Committee Trade Subcommittee's hearing on Customs budget authorizations and other Customs issues. Also testifying at the hearing were representatives from the following organizations:
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U.S. Immigration and Customs Enforcement (ICE)
National Customs Brokers and Forwarders Association of America
International Council of Cruise Lines
American Association of Exporters and Importers
FedEx Express
National Treasury Employees Union
Association of Floral Importers of Florida
Highlights of CBP Commissioner's Written Hearing Statement
The following are highlights of the written statement presented by the CBP Commissioner at the House Trade Subcommittee hearing.
Additional data, currently captured later in import process, could be provided in advance. Noting that CBP requires advance information on all cargo being shipped to the U.S. before it arrives at U.S. ports of entry, the Commissioner states that additional data, which is currently captured later in the import process, could also be provided in advance.
New capabilities have been added to the Automated Targeting System. The Commissioner states that as the Automated Targeting System (ATS) has been developed, new capabilities have been added that allow CBP personnel to identify anomalies relevant to the trade mission. For example, ATS is now being used to target shipments that may violate pharmaceutical and Intellectual Property Rights (IPR) import laws.
Next-generation of targeting tools are being developed in ACE. According to the Commissioner, next-generation targeting tools, such as statistical risk modeling techniques, are being developed in the Automated Commercial Environment (ACE) to provide greater depth in CBP's modernization efforts.
CBP has completed validations for 50% of certified C-TPAT membership. According to the Commissioner, over 10,000 companies have applied to become Customs-Trade Partnership Against Terrorism (C-TPAT) members and more than 6,000 companies have been certified as having implemented C-TPAT security criteria.
Regarding C-TPAT validations, the Commissioner states that at present, the C-TPAT program has completed validations on 50% of the certified membership, up from 8% completed in January 2005. Validations are underway on another 15% of certified members and will be completed by the end of 2006. CBP continues to state that its goal is to validate 100% of certified members by 2007.
ACE will consolidate or integrate seven different current systems. The Commissioner states that ACE will consolidate or integrate seven different current systems - including ATS and the Free and Secure Trade (FAST) program - and will serve as the single Government window for trade data that supports both cargo security and trade enforcement and facilitation efforts.
CBP organizes its National Trade Strategy around Priority Trade Issues. According to the Commissioner, CBP's National Trade Strategy is organized around Priority Trade Issues (PTIs), which were developed using a consistent risk-based analytical approach with an emphasis on integrating and balancing the goals of trade facilitation and trade enforcement. Current PTIs include IPR, antidumping and countervailing duties, textiles and wearing apparel, revenue, and agriculture.
FY 2005 trade compliance was 95%, with ISA and C-TPAT compliance at 97%. The Commissioner states that the success of CBP's integrated approach to trade security, facilitation, and enforcement is evidenced by increasing rates of trade compliance. In fiscal year (FY) 2005, the trade compliance rate, as measured by compliance measurement (CM), was 95%, compared to 94% in FY 2004 and 93% in FY 2003.
In addition, the Commissioner states that trade compliance rates for CBP's partnership programs are even higher than the overall rate, with a 97% trade compliance rate for both the Importer Self-Assessment (ISA) program and C-TPAT participants.
(See ITT's Online Archives or 07/20/06 news, 06072005, for BP summary of House Trade Subcommittee press release announcing hearing.)
CBP Commissioner's written hearing statement (dated 07/25/06) available at http://waysandmeans.house.gov/hearings.asp?formmode=view&id=5160.
All witness testimony available at http://waysandmeans.house.gov/hearings.asp?formmode=detail&hearing=497.